As a business owner, it is important to safeguard the revenue stream along with the products or services you provide. While insurance handles the financial losses associated with claims arising from property damage, bodily injuries or failed products, it is just as important to protect yourself from losing the relationships you have build with vendors, creditors and others. Protecting your finances and credit can be done with business income coverage.
Dealing With Loss
If your building catches on fire, a general liability policy will be used to pay for the repair or replacement of the damaged structure, and depending on the extent of the inclusions, any property contained within. However, your policy will not pay for the lost income or additional expenses incurred while your company relocates, while employees are sent home or while production lines are down.
When operations fail to go on as usual, it results in a financial hit. A weak or non-existent revenue stream means your company can’t pay the equipment loans you’ve taken out or the outstanding invoices from your suppliers. Non-payment, despite your good reason, can lead to lost relationships with key companies and a damaged credit report that will impact your borrowing ability for years to come.
A business income protection policy steps in and covers the expenses and lost income when covered circumstances arise. This financial support can keep you afloat and protect your company’s good name while challenges are being overcome.